Occasionally, news articles may be interpreted in a rather negative light, resulting in a significant drop in stock prices. It’s unfortunate and frustrating, but it happens, as is currently the case with Aegon. A technical analyst (TA) might wonder whether this bearish downturn presents buying opportunities. To find an answer, we will analyze the weekly chart. I can reveal now: yes, there are indeed buying opportunities!
The weekly chart indicates a positive undertone, albeit with noticeable turbulence. The stock price fluctuates considerably but remains overall above an upward-sloping moving average, suggesting a positive trend phase. However, a volatile stabilization has been observed in the second half, indicating a pause in the sequence of higher highs and higher lows. This does not signify a trend reversal, but it also does not confirm a strong continuation of the trend.
The current stabilization outlines the contours of a trading range, with a lower boundary approximately at €6.20 and an upper boundary around €6.96. The price oscillates between these levels with long alternating candlesticks, both white and black, showing a clear movement between the established boundaries. This week, a strong black candlestick emerged, marking a significant bearish move. Nevertheless, it seems that this setback is being absorbed within the lower part of the trading range. While bears are active, bulls are still in contention as long as the price remains above €6.20.
Upcoming Buying Opportunities
If the price can maintain itself within the trading range over the coming weeks, there will certainly be buying opportunities for both range traders and trend-following investors. For traders to take positions, it is crucial that a bullish candlestick appears next week as an initial sign of a potential bottom. Anticipatory bargain hunters might also act earlier if the small tail beneath the black body becomes longer, which indicates the bulls’ resilience.
All in all, this presents an exciting proposition, where bulls must quickly demonstrate their strength to maintain the potential for higher prices.
Disclaimer: Nico Bakker holds no position in Aegon.
If you would like to study a detailed chart featuring all my market indicators, please refer to my Chart Service.
Risk Warning
Turbos are complex instruments and come with a high risk of rapidly increasing losses due to leverage. Seven out of ten retail investors lose money trading turbos. It’s essential that you fully understand how turbos work and consider whether you can afford the high risk of loss.
Disclaimer
Nico Bakker is the director/owner of BTAC Visuele Analyse and is associated as an independent consultant with BNP Paribas S.A. (www.bnpparibasmarkets.nl). The information in this publication is not intended as individual investment advice or a specific recommendation to make particular investments. Any investment you consider should be assessed against your personal investor profile or discussed with your investment advisor. The value of your investments may fluctuate. Past performance offers no guarantee for future results. Bakker’s viewpoints and outlook represent his technical opinions on the subject as a technical analyst and consultant. The remuneration of BTAC and Bakker is not connected, directly or indirectly, to his specific recommendations or views in this publication.
At the time of writing, Nico Bakker of BTAC may hold either a long or short position in one of the underlying assets described in this document, as well as financial instruments that are related to them. There may also be indirect holdings through investment funds, pension funds, and/or capital insurance in which he or other BTAC staff have no influence over the investment policy. No other potential conflicts of interest are known.
Read here for the disclaimer regarding investment recommendations applicable to this document.
Nico Bakker is the director and owner of BTAC Visuele Analyse and is associated as an independent consultant with BNP Paribas S.A. The information in this publication is not intended as individual investment advice or a specific recommendation to make particular investments. Any investment you consider should be assessed against your personal investor profile or discussed with your investment advisor. The value of your investments may fluctuate. Past performance offers no guarantee for future results. Bakker’s views and outlook represent his technical opinions on the matter in his capacity as a technical analyst and consultant. His remuneration is not connected, directly or indirectly, to his specific recommendations or views in this publication.
